SEC Fines Bitcoin Crypto Wallet

abra

The United States Securities and Exchanges Commission (SEC) has fined Abra, a bitcoin and crypto wallet, for failing to register. They say: “Abra developed and owns an app that enabled users to bet on price movements of U.S.-listed equity securities. Using the app, individuals were able to enter into contracts that provide synthetic exposure to price movements of stocks and exchange-traded fund (ETF) shares trading in the U.S. through blockchain-based financial transactions with Abra or with related company Plutus Technologies Philippines Corp. The order finds that Abra told users they could choose securities whose performance they wanted to mirror, and the value of their contract would go up or down the same amount as the price of the underlying security. The order further finds that these contracts were security-based swaps subject to U.S. securities laws.” Abra ceased this stocks synthetics aspect in February 2019 after SEC reached out to them,…

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